Australia Post has swooped to hire Microsoft’s Asia Pacific president Tracey Fellows to bolster its technology expertise further as it pursues an increasingly digital strategy.

Ms Fellows, who was previously the managing director of Microsoft Australia, will become Australia Post’s first executive general manager for its new communications management services business unit, which combines its previously separate postal services and e-services divisions.

The move comes after Australia Post installed former Telstra chief financial officer John Stanhope as its chairman in November. Ms Fellows will lead the postal firm’s push to reinvent itself in the digital era. Fewer letters are being sent due to electronic messaging but parcel delivery from online shopping is an increasingly competitive growth area.

“She will be leading a very important part of our business at a time of significant change, as Australian businesses and consumers increasingly shift to digital forms of communication," an Australia Post spokeswoman told The Australian Financial Review.

In its annual report last October, Australia Post said it would invest more than $1 billion to make parcels its main focus. Its mail delivery monopoly has continued to generate losses.

Chief executive
Ahmed Fahour
said Australian online shopping rates were still only half of those in the US and other Western economies, and the investment would enable Australia Post to double parcel processing capacity by 2020 and take advantage of the expected growth.

Australia Post has already begun offering smart lockers in some areas, which allow online shoppers to collect parcels around the clock. However it faces competition from rivals such as the recently announced Adam service, being set up by Mark Bouris and James Packer.

Meanwhile it is working on the launch of a digital mailbox service, which will allow companies like Commonwealth Bank of Australia or AGL to send bills via the internet rather than through the mail.

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It has also run into stiff competition on this from rival provider Digital Post Australia, a joint venture that includes Computershare and technology provider Zumbox.

Ms Fellows will begin her new role in February, and Microsoft said it was close to announcing her replacement. It has appointed Asia Pacific vice-president sales, marketing, services and support Alvaro Celis as interim Asia Pacific president.

Ms Fellows confirmed she was joining Australia Post but declined to comment further.